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The new tax law passed the legislature at the end of last year and came out in the judicial newspaper La Gaceta Dec. 4. The full effect begins six months from that date, or around June 4. Expats should brace for some expensive surprises. Here is a quick study guide to what they can expect.
Costa Rica just experienced the longest strike on record for the country. It lasted 90 days. President Carlos Alvarado insisted the country needed a new tax initiative to get it out of financial trouble. Most unions and many individuals opposed the plan for a myriad of reasons, so the strike went on and on.
That discourse is not of import now. The law is now a reality, called the Fortalecimiento de las Finanzas Públicas (Strengthening of Public Finances) Ley 9635. That's a fancy name for what it is: a tax law packing a big bite and severe consequences for tax cheaters.
The legislation is in four parts: The first and second parts rewrite the sales and income tax laws. The third and fourth deal more with government employees and fiscal procedures to save money.
How will the changes affect expats?
